Overview

Spilt milk: Revenue continues to decline due to plummeting global dairy prices

IBISWorld’s Dairy Cattle Farming market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$4bn
Annual Growth
2012 - 2017
-0.7%
Annual Growth
2017 - 2022
Profit
Employment
16,126
Business
6,007

Industry Threats & Opportunities

  • Plummeting global dairy prices have weakened the industry's performance over the past two years
  • Farmgate milk prices are largely determined by major dairy processors, such as Fonterra
  • Farmgate milk prices are forecast to rise over the period, boosting dairy cattle farmer income

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    Industry Analysis & Industry Trends

    The Dairy Cattle Farming industry has faced volatile externalities over the past five years. Demand fluctuations, global market shifts and fluctuating farmgate prices have influenced industry revenue. Plummeting global dairy prices have heavily influenced the industry's performance over the past two years. Industry revenue is forecast to fall at an annualised 0.7% over the five years through 2016-17, to $3.9 billion. Furthermore, the national dairy herd is expected to decline during 2016-17, which is likely to reduce national milk production. These trends, coupled with decreased farmgate prices for raw milk due to low global dairy product prices, are projected to depress industry revenue by 5.6% in 2016-17...

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    Industry Report - Industry Locations Chapter

    The industry is concentrated in high rainfall areas along the coast of southern and eastern mainland Australia, the south-west corner of Western Australia, and Tasmania. In addition, there is some dairy farming in irrigated inland areas around the border of Victoria and New South Wales, and on the Atherton Tablelands in Queensland. This spread reflects the importance of rain or irrigation for pasture growth. Most dairy farming in Australia is pasture-based and with a good supply of rain or irrigation, cows can be grazed on pasture year-round.

    Victoria is by far the most prominent state in the industry, followed by New South Wales. The strong concentration of farms in Victoria reflects the state's rich soils and temperate climate. Vic..

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    Additional Insights for the Dairy Cattle Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Cattle Farming Industry are

  • Economies of scale
  • Superior financial management and debt management
  • Appropriate climatic conditions
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Milk production in the Dairy Cattle Farming industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    What is the Dairy Cattle Farming Industry?

    Operators in the Dairy Cattle Farming industry mainly raise and milk dairy cattle. The industry is made up of numerous small dairy farms that produce raw milk. These farms are mostly family owned and operated.

    Industry Products
    Milk for manufacturing
    Drinking milk
    Cattle
    Industry Activities
    Dairy cattle farming
    Raw cattle milk production

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Domestic price of milk
  • Milk production
  • Level of annual rainfall
  • Milk consumption
  • Domestic price of coarse grains
  • Electricity service price

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Milk production
  • International influences
  • Industry landscape
  • Table: Dairy Cattle Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Cattle Farming Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Milk and Cream Processing
  • Ice Cream Manufacturing
  • Butter and Dairy Product Manufacturing
  • Cheese Manufacturing
  • Milk Powder Manufacturing

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Prepared Animal and Bird Feed Manufacturing
  • Shearing, Cropping and Agricultural Support Services
  • Veterinary Services

  • Products & Services
  • Milk for manufacturing
  • Drinking milk
  • Cattle
  • Chart: Dairy Cattle Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other dairy product manufacturers
  • Cheese manufacturers
  • Milk processors
  • Farmers and abattoirs
  • Chart: Major Market Segmentation for the Dairy Cattle Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Cattle Farming

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Cattle Farming Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Cattle Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Dairy Cattle Farming Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Casein
  • The predominant protein in cow milk and cheese.
  • Dairy Co-Op
  • A cooperative owned by a group of dairy farmers enabling them to supply bulk milk volumes.
  • Dairy Products
  • Foodstuffs made from milk, such as cheese, yoghurt, butter and cream.
  • El Nino
  • A recurring weather pattern that typically causes drought conditions across the eastern states of Australia.
  • Farmgate Milk Price
  • The price that a dairy farm receives for its milk.
  • Fodder
  • Roughage, such as hay, fed to livestock.
  • Imputed Wage
  • The estimated labour input of the farm owner, their partner and/or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Milk Tier
  • Milk supplies are divided into separate volumes and priced separately. Tier 1 milk is the volume the farmer is contracted to produce. Tier 2 is additional milk produced, beyond the contracted amount.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Dairy Cattle Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Dairy Cattle Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Dairy Cattle Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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